Rejection of Value - Service Tax Practice Manual / Ready Reckoner - Service Tax

Valuation Rules - Rejection of Value - Rule 4 Rule 4 of Service Tax (Determination of Value) Rules, 2006 is applicable where: - The primary responsibility to determine the correct value of the taxable services lies upon the assessee. However, in certain cases the Central Excise Officer has the power to reject the value and determine the same in accordance with the valuation rules. Before, rejecting the value determined by the assessee the Central Excise Officer has to follow the prescribed procedure as follows: - A show cause notice shall be issued. - Show cause notice must specify the value of taxable services. - Opportunity of being heard must be granted. - Correct Value shall be determined. ==============